Hello!

Unfortunately, I cannot reproduce the bug. I tried with the same option,
I tried purging the package beforehand, I tried manually deleting the
options file, but to no avail. The option is stored and it is loaded on
startup.

$ diff /home/eike/.kde/share/config/kdiff3rc.bak 
/home/eike/.kde/share/config/kdiff3rc
20c20
< CreateBakFiles=true
---
> CreateBakFiles=false

Could you please have a look if there's something strange about your 
options file? And would you send the part of the output of "strace kdiff3"
(with changing the option) caring about kdiff3rc?

Ciao,
                Eike

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